Japan asks US to clarify the Nippon Steel and US Steel deal

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10-01-2025 14:46

Japan asks US to clarify the Nippon Steel and US Steel deal

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Japan asks US to clarify the Nippon Steel and US Steel deal

What an awkward situation: the deal between Nippon Steel and US Steel is still up in the air! Against this backdrop, Japan’s Foreign Minister Takeshi Iwaya met with US Secretary of State Antony Blinken to request explanations. He urged Washington to calm the worries of Japanese and American business communities about future investments between the two countries. This request came after US President Joe Biden banned the deal between Nippon Steel and US Steel.

Despite the tension, the official believes investments between Tokyo and Washington are beneficial for both nations. After Biden’s veto, Iwaya noted serious concerns about future investments between Japan and the US in business circles.

Industrial leaders seem especially nervous, Iwaya stressed. That is why he called on the US to take steps to address these concerns.

Beyond the Nippon Steel and US Steel deal, the Japanese foreign minister and the US secretary of state discussed strengthening bilateral relations, including in security. Iwaya expressed confidence in continued cooperation between the two countries under the new White House administration.

Let us remind you that in December 2023, Japan's Nippon Steel announced plans to acquire US Steel for $14.1 billion. The deal would have made the American company a subsidiary of the Japanese steel giant. However, the White House said the acquisition of a key US company by a foreign entity requires careful scrutiny of potential national security risks.

In late December 2024, the Committee on Foreign Investment in the United States (CFIUS) stated it could not reach a consensus on the national security implications of the deal. The matter was passed to President Biden.

In early January 2025, Nippon Steel made a new offer. It promised a 10-year guarantee that production capacity would not be reduced at US Steel plants in Pennsylvania, Indiana, Alabama, Texas, California, and Arkansas without American approval.

However, on January 3, 2025, President Biden blocked the deal, deeming it a national security threat. This decision infuriated David Burritt, US Steel’s CEO, who called it a disgrace and an act of political corruption.

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